Must know things about car insurance in New Jersey

Must know things about car insurance in New Jersey

Obtaining auto insurance in New Jersey can be a costly as well as a complicated affair. There are two options for a New Jersey driver. One can either choose a basic or a standard auto insurance policy.

The basic policy is generally suitable for those who do not have many assets or family responsibilities. It included optional bodily injury liability stretching to about $10,000 and an equal amount for property damage liability. Additionally there is also $5,000 in personal injury protection (PIP).

The standard policy differs in the amounts for minimum liability coverages and stretches to $15,000 to $30, 000 per person injured as well as per person injured. There is also a provision for personal injury protection (PIP). Users who opt for a standard policy can choose uninsured and underinsured motorist coverage along with collision and comprehensive coverage.

The average auto insurance premium in 2003 for New Jersey residents was $1,365 as compared to a national average of $914. That is why it is imperative that drivers be aware of what choices they have and what can be best suited for their requirements.

This is especially true since the price of New Jersey auto insurance is calculated based on all drivers rather than individual's record of driving. Even if you have a great driving record, you still have to shell out as much as the worst driver. Auto companies in NJ calculate the insurance costs as a whole inclusive of settlements and legal fees and simply divide it up among all drivers.

However, even this procedure is not spread evenly all round. The amount to be paid by a driver is calculated by the age, the area when the person resides and the kind of car possessed. As a driver, the consumer must shop around since all companies have different rates and decide what is best.

NJ residents also have the option of looking around on the Internet to find quotes. This was not possible till 2004. In March that year, an Auto Insurance Purchasing Planner was unveiled to benefit NJ drivers. "Our reforms have led to a new competitive marketplace that puts the consumer in the driver's seat. Now drivers can easily shop around for the best prices and the best policy that suits their needs," Gov. James E. McGreevey had said.

"Drivers have many options to consider when buying insurance. With our new online purchasing planner, we will help drivers better understand their choices so they don't end up paying for coverage they don't really need."
The tool can be accessed on the Department's Web site at www.njdobi.org